Analysys International says new chips are vital for Intel' s future

Industry analysts predict that Intel's launch of Core Duo Processors will drive the processor market to a turning point of competition.

According to Analysys International, the Core Duo architecture promises delivery of higher performance while consuming less power, and also boasts a smart cache and optimised memory access. The analyst firm believes the move shows Intel's intention to emphasise the new phase of parallel computing processors with enforced performance as well as to rebuild its brand advantage.

Analysys International thinks that Intel will pay more attention to the price/performance ratio in its future product strategy planning since price factors will play a more important role in future competition. Intel's action of reducing the price of some of its products has two purposes: one is to pave the way for its new products; the other is to compete with rival AMD and reduce market pressure. Intel's considerable price reductions will produce an adverse influence on AMD and finally lead both parties into a new phase of competition.

“At this turning point, Intel should continue to drive the industry with technical innovation while coming closer to the market with faster response to customer's demands and more flexible product strategy,” Analysys International said.

However, the analyst also points out that Intel faces two challenges when promoting the new brand. One is how to combine business customers with enterprise applications, the other is to coordinate with OEM vendors.

“The launch of Core Duo will intensify the competition between Intel and AMD, as well as drive the processor market to a turning point to determine both parties' fate. How to deal with the combination with industry application and the coordination with OEM vendors will be the key factors to determine this new architecture's success,” the company said.